New Western Energy Corp. (OTCMKTS:NWTR) Gets Yet Another Pump

For some companies stock pumps are like the seasons – cyclic and predictable. New Western Energy Corp. (OTCMKTS:NWTR) just got its latest round of tout emails yesterday.

The ticker’s relationship with promoters stretches far back in time. The first major pumper push came in December last year when a $300 thousand pump conducted primarily by Pennies Picks, a promoter outfit operated by Stock Mister. The expensive pump managed to push NWTR to over $1 but come March 2013, the price had crashed down over 60%.

By late May promoters decided it was time for another round and we covered those new pumps. NWTR was pumped again in mid-July, which we also covered. Neither of those campaigns had a particularly beneficial effect on the stock, likely due to the small-time promoters and far smaller compensations handed out. Late October marked another organized pumper push for NWTR that extended into early November but the price once again retreated near its pre-pump values once the emails stopped coming.

The new pumps don’t even make an effort to explain why traders should keep an eye on NWTR and just state it’s their new pick. Another pumper outfit previously targeting Tiger Oil and Energy, Inc. (OTCMKTS:TGRO) also announced NWTR as their new pick, without any further explanation. It seems like it’s getting increasingly difficult for promoters to find things to tout about the company. Here is what NWTR looked like as of its latest report for Q3 of this year:

$126 thousand in cash

$788 thousand in current liabilities

$68 thousand in revenues for Jan-Sep 2013

$1.3 million in net loss for Jan-Sep 2013

After NWTR burned through its March reserves of nearly $800 thousand in cash, the company issued a convertible note for $1.2 million in November, with the holder able to convert shares at $0.19 – a discounted price even at yesterday’s close. Despite juggling with land leases, NWTR has not yet been able to turn substantial revenue from any of those.

The track record of promoters OTC Tip Reporter – one of the parties currently touting NWTR, is also far from pretty. They sent alerts for Megola, Inc. (OTCMKTS:MGON) on November 17 and the ticker took an immediate nose dive, crashing over 80% in nine consecutive sessions after the tout.

Investors are advised to do their own due diligence and never trade on random email recommendations that land in their inbox.